WASHINGTON, D.C. – The U.S. Commodity Futures Trading Commission
(CFTC) announced today that it issued an
order against Robert Benjamin
Harmon, Jr. of Cos Cob, Connecticut, who is registered with the CFTC
as a floor broker. The order finds that on certain days in July 2000,
Harmon and another floor broker unlawfully executed crude oil futures
trades on the New York Mercantile Exchange (NYMEX).

Specifically, the CFTC order, entered on January 16, 2004, finds that in
July 2000, Harmon, trading for his own account, executed a series of
trades opposite another floor broker. The order also finds that through
those trades, they bought and sold crude oil futures contracts in the
same quantities and contract months, and at the same prices, which, when
averaged at the end of the day, netted neither a profit nor a loss to
either of them.

Furthermore, according to the order, Harmon and the floor broker entered
into those trades with the intent to avoid taking bona fide
positions in the market, and such trading constitutes wash sales in
violation of the Commodity Exchange Act (CEA) and CFTC regulations. The
order also finds that by entering into such illegal, non-competitively
executed trades, Harmon and the floor broker reported, or caused to be
reported, prices that were not true and bona fide, in further
violation of the CEA. The order states that Harmon and the other floor
broker engaged in the non-competitive trades in an effort to increase
their pit card submission rate to meet NYMEX floor rules.

Harmon, without admitting or denying the order’s findings,
consented to the entry of the order, which requires him to cease and
desist from further violations of certain provisions of the CEA and CFTC
regulations, and to pay a civil penalty in the amount of $8,500.

The settlement arises from a complaint filed against Harmon on September
8, 2003 (see CFTC News Release 4837-03, September 9,
2003) at which time the CFTC also accepted a settlement offer and issued
an order imposing a civil penalty of $7,500 from Michael Alan Garber for
similar misconduct.

A copy of the CFTC order and complaint may be found at
http://www.cftc.gov.

The following Division of Enforcement staff members are responsible for
the case: Lawrence M. Green, William Hoar, Karen Kenmotsu, and Gretchen
L. Lowe.